2021 Georgia Code
Title 40 - Motor Vehicles and Traffic
Chapter 9 - Reporting Accidents; Giving Proof of Financial Responsibility
Article 5 - Assigned Risk Plans, "Spot" Insurance, and Cooperation by Insured
§ 40-9-100. Assigned Risk Plan

1. After consultation with insurance companies authorized to issue automobile policies in this state, the Commissioner of Insurance shall approve a reasonable plan or plans for the equitable apportionment among such companies of applicants for motor vehicle liability policies and other automobile policies who are in good faith entitled to but are unable to procure such policies through ordinary methods. When any such plan has been approved, all such insurance companies shall subscribe thereto and participate therein.
2. Any applicant for a policy to be issued under any such plan, any person insured under any such plan, and any insurance company affected may appeal to the Commissioner of Insurance from any ruling or decision of the manager or committee designated to operate such plan. Any person aggrieved by any order or act of the Commissioner of Insurance under this Code section may, within ten days after notice of such order or act, file a petition in the superior court of the county of his residence for a review thereof. The court will summarily hear his petition and may make any appropriate order or decree.
3. A person who has committed no traffic offenses for the prior three years and has had no claims based on fault against an insurer for the prior three years shall not be eligible for a policy to be issued under the plan created by this Code section unless such person's application or the subsequent investigation on the application discloses reasons for which the person would not be able to procure a policy through ordinary methods.

(Ga. L. 1951, p. 565, § 17; Ga. L. 1963, p. 593, § 10; Code 1933, § 68C-601, enacted by Ga. L. 1977, p. 1014, § 1; Ga. L. 1990, p. 738, § 1; Ga. L. 1994, p. 97, § 40.)

- Pursuant to Code Section 28-9-5, in 1994, "Commissioner of Insurance" was substituted for "Insurance Commissioner" in the second sentence in subsection (b).

JUDICIAL DECISIONS

Legislative intent.

- Enactment of assigned risk plan found in O.C.G.A. § 40-9-100 indicates a determination by the General Assembly that an innocent party should not bear the loss. Young v. Allstate Ins. Co., 248 Ga. 350, 282 S.E.2d 115 (1981).

- Policy issued pursuant to the plan can provide a maximum bodily injury liability limit of $100,000 per person. Schwartz v. Black, 200 Ga. App. 735, 409 S.E.2d 681, cert. denied, 200 Ga. App. 897, 409 S.E.2d 681 (1991).

- Since the plan itself provides a maximum bodily injury liability limit of $100,000, reliance upon principles of general contract and insurance law to assert a greater limit in the instant case is unavailing. Schwartz v. Black, 200 Ga. App. 735, 409 S.E.2d 681, cert. denied, 200 Ga. App. 897, 409 S.E.2d 681 (1991).

Failure of insured to notify insurer of lawsuit against the insured does not constitute defense to insurer's liability. This is true even though the insurance has been extended by the insurer under the assigned risk plan set out in O.C.G.A. § 40-9-100. Young v. Allstate Ins. Co., 248 Ga. 350, 282 S.E.2d 115 (1981).

Insured's failure to comply with the notice provisions of a policy of automobile insurance issued pursuant to Georgia's assigned risk plan would not operate to defeat recourse to the policy by a third party when the insurer received prompt and adequate notice of the pendency of litigation, and there was no suggestion that the insurer's ability to defend had been prejudiced in any way by the failure of the insured to provide the insurer with prior notice of an accident. Starnes v. Cotton States Mut. Ins. Co., 194 Ga. App. 320, 390 S.E.2d 419, aff'd, 260 Ga. 235, 392 S.E.2d 3 (1990).

Cited in Allstate Ins. Co. v. Young, 638 F.2d 31 (5th Cir. 1981); Georgia Farm Bureau Mut. Ins. Co. v. Coffman, 169 Ga. App. 192, 311 S.E.2d 854 (1983); National Indem. Co. v. Smith, 172 Ga. App. 415, 323 S.E.2d 274 (1984); Allstate Ins. Co. v. O'Brien, 172 Ga. App. 693, 324 S.E.2d 498 (1984); Berryhill v. State Farm Fire & Cas. Co., 174 Ga. App. 97, 329 S.E.2d 189 (1985); Moore v. Georgia Cas. & Sur. Co., 179 Ga. App. 247, 345 S.E.2d 894 (1986); State Farm Mut. Auto. Ins. Co. v. Hamilton, 213 Ga. App. 384, 444 S.E.2d 414 (1994).

RESEARCH REFERENCES

Am. Jur. 2d.

- 7 Am. Jur. 2d, Automobile Insurance, §§ 24, 57.

- Automobile liability insurance, 13 A.L.R. 135; 19 A.L.R. 879; 23 A.L.R. 1472; 28 A.L.R. 1301; 41 A.L.R. 507.

Cancellation of compulsory or "financial responsibility" automobile insurance, 44 A.L.R.4th 13.